Teletouch Sells Paging Business to Focus on GPS
Teletouch Communications, Inc. announced that on August 22, 2005, TLL entered into an Asset Purchase Agreement (“APA”) with Teletouch Paging, LP, a newly formed limited partnership, wholly-owned by a private Fort Worth, Texas, investment group to sell all of TLL’s paging business assets and operations. The agreed purchase price is $5.2 million.
“This strategic move will significantly increase Teletouch’s cash position and will allow the company to concentrate its technology development and sales efforts in the emerging Homeland Security, Telematics and related GPS Location-Based Services markets, which are expected to grow to over $50 billion by 2010, according to Gartner, BCCI, UBS Warburg and other published reports.
“We plan to fully leverage the GPS-based mobile asset tracking applications we’ve developed for upcoming Department of Homeland Security directed initiatives for hazardous materials tracking in the railroad industry, and through sales of our proprietary Lifeguard II(TM) technology for “at-risk” and “lone” worker life safety monitoring and locating. Both of these markets show great promise, and our preliminary sales and indications of interest are strong.
In addition, we have sold and installed over a thousand GPS tracking units to date, and recently signed a comprehensive call center services agreement to provide stolen vehicle location services for fast growing Guidepoint Systems. We will continue these efforts, with the increased financial capability of hiring additional sales people, completing proprietary product development and potentially acquiring new spectrum, operations and related businesses.